Rate Lock Advisory

Wednesday, January 29th

Wednesday’s bond market has opened in positive territory as fears about the coronavirus and its impact on the global economy grows. Stocks don’t seem to be too concerned though, pushing the Dow up 116 points and the Nasdaq up 15 points. The bond market is currently up 12/32 (1.62%), but slight weakness late yesterday should keep this morning’s mortgage rates close to Tuesday’s early pricing.



30 yr - 1.62%







Mortgage Rate Trend

Trailing 90 Days - National Average

  • 30 Year Fixed
  • 15 Year Fixed
  • 5/1 ARM

Indexes Affecting Rate Lock



Geopolitical/Financial Issues

There is no relevant economic data set for release this morning. It appears bonds are reacting to news that cases of the coronavirus have surpassed the SARS epidemic from 2002-2003. It is fueling speculation that there will be a negative impact on the global and domestic economies. However, even though this is good news for bonds and mortgage rates, stock traders don’t share the same level of concern that bond traders have. Hence, the relatively strong open in both stocks and bonds this morning.



Federal Open Market Committee (FOMC) Statement

The first FOMC meeting of the year is wrapping up at 2:00 PM ET this afternoon. There is a wide consensus that Fed Chair Powell and friends will not make a change to key short-term interest rates. It is more likely that the post-meeting statement will be the cause of any afternoon volatility. It is worth noting that every FOMC meeting is now followed by a press conference with Chairman Powell. Traders will be looking for hints as to when the next rate move is likely to come and if the Fed plans on making changes to their balance sheet program. It will be an afternoon event that could have a big impact on the financial and mortgage markets if there are any surprises.




There will be an update to this report shortly after the markets have an opportunity to react to the FOMC events.



Gross Domestic Product (GDP)

Tomorrow morning brings us a major piece of economic data with the release of the initial 4th Quarter GDP reading. This index tells us the growth rate of the economy during the October, November and December months of last year. It will be addressed in this afternoon’s revised commentary.

Float / Lock Recommendation

If I were considering financing/refinancing a home, I would.... Lock if my closing was taking place within 7 days... Lock if my closing was taking place between 8 and 20 days... Float if my closing was taking place between 21 and 60 days... Float if my closing was taking place over 60 days from now... This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.